World Cement

Global sales to grow over 5% annually through 2017

Worldwide sales of cement are forecast to expand more than five percent per
annum through 2017 to 4.8 billion tons, a slight deceleration from the
2007-2012 pace. Following recent severe declines from 2008 to 2011, cement
demand is expected to rebound sharply in North America and Western Europe.
Eastern Europe will perform much better through 2017 as well. In contrast,
growth in the Africa/ Mideast and the Asia/Pacific regions is expected to
decelerate significantly between 2012 and 2017, after more than a decade of
rapid gains. However, advances in these regions will remain above the global
average. Sales of cement in Central and South America are forecast to continue
to increase nearly six percent per year during this period. The nonbuilding
segment of the global cement market is expected to outperform its counterparts
through 2017, as governments in both developed and industrializing countries
invest heavily in their public infrastructures.

China to account for half of new cement demand

More than 50 percent of all additional cement demand generated between 2012
and 2017 will be attributable to China, the world's leading consumer of this
product. Cement sales in China are projected to rise nearly eight percent per
year during this period. As the Chinese cement market matures, growth is
expected to decelerate from the breakneck pace of the last decade. However, in
absolute terms, cement consumption will still increase dramatically through
2017. Massive gains in building and nonbuilding construction activity will
stimulate product demand in China.

Cement sales to rebound in North America & Europe

Following several years of losses during the recession-plagued 2007-2012
period, the cement markets of Eastern Europe, North America, and Western
Europe are projected to expand between four and six percent per annum through
2017. As these regions recover from the global financial crises, residential,
commercial, and public works construction activity will rebound, generating
additional demand for cement. Eastern Europe and North America will record
somewhat faster growth between 2012 and 2017 than Western Europe. In terms of
major countries, Spain, Ukraine, the United States, Russia, and Italy are
expected to perform particularly well, as there is a considerable amount of
pent-up cement demand in each of these markets.

Portland cement to lose market share to other types

The blended cement segment is projected to account for three-fourths of all
new product demand generated between 2012 and 2017. Blended cement will
continue to gain market share because of its lower cost and environmental
features. Manufacturers prefer blended cement because it allows them to boost
output, to reduce energy consumption and production costs, and to comply with
increasingly stringent emissions standards. Through 2017, sales of other types
of cement will expand at the market's fastest pace, as demand for specialty
and environmentally friendly products grows. Nevertheless, other types of
cement will still account for a small portion of overall cement sales. Despite
losing market share, portland cement will still be used extensively in
higher-end applications because of its strength and durability.